According to the textbook, markets always find their equilibrium. Explain the adjustment process by which a market finds this point. Make sure to deal with this question from two points of view separately: the buyer and the seller.

According to the textbook, markets always find their equilibrium. Explain the adjustment process by which a market finds this point. Make sure to deal with this question from two points of view separately: the buyer and the seller.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 8QP

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Markets always find their equilibrium.

Suppose if market price is above equilibrium,there will be surplus.To come back to equilibrium price market will adjust by increasing demand which will meet the excess supply.

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